Scottish First Time Buyer

hellomoto

Probably a daft question but I am having problems finding the answer.
(I will make up the figures for illustration purposes)

If you know your bank will lend you 42K

If a property is valued at 40K

You put in an offer of 48K

Will the bank still loan you 42K or will they loan you what the property is worth - 40K

?

Thanks for the help

Big_Nige

The mortgage is based on the surveyor's valuation of the property, so in the above case the bank would lend you £40k.

Nige.

dccarm

They might also only lend you up to 95% of the property value (ie £38000) depending on the mortgage. IAs a first time buyer the Halifax allowed me up to 97% on an FTB mortgage. Ideally you don't want to borrow more than 90% of the value as you pay an extra charge if you do (to most banks as far as i know). That's easy to say, but not so easy for a FTB to manage!

Pinkleylandii

Hello

Scotland is a different system to England. When you see the offers over price it can be between 15-55% over the offers over price which is horrible because the property goes to a closing date and the best offer wins. If the property is valued less that what you have offered, if you think of it logically the mortgage people are only going to lend up to the valuation price of the property and you will have to find the extra yourself. We had this problem. It is a horrible system for buying in Scotland. Just recently loads of property went to fixed price because of the slow down in the market that is what you want. You need to keep your eye out on the property website

https://www.espc.co.uk - this covers edinburgh, lothians, etc

and look for fixed price you then have a much better chance of getting the property at reasonable cost without going to bids. I hope this helps. What I would say when you do buy if there is something you are not happy with the house you can ask as a condition in the missives to get it sorted, we did not realise this when we bought.

Elaine

hellomoto

It is a horrible system for buying in Scotland.

It certainly is!
I have just had an offer accepted that is 15K over the offers over price, 10K over its valuation and £12K over what my mortgage company will lend me (thanks parentals).
AND my bid was not the iniitial winning bid!!!! I only got it as the first person backed out and there bid was at least 2K over mine!
No wonder so few people get on the property ladder

:mad:
:T

Jacster_2

hellomoto wrote:

It is a horrible system for buying in Scotland.

It certainly is!
I have just had an offer accepted that is 15K over the offers over price, 10K over its valuation and £12K over what my mortgage company will lend me (thanks parentals).
AND my bid was not the iniitial winning bid!!!! I only got it as the first person backed out and there bid was at least 2K over mine!
No wonder so few people get on the property ladder

:mad:
:T

Congratulations on getting your house hellomoto! Great news for you.:T

The offers-over system is really difficult, especially as at FTB, but there's less of it about these days and more fixed price. On the bright side, at least you can't get gazumped in Scotland...:D